The Ministry of Energy has planned to construct an oil refinery in central Myanmar to refine crude oil from Myanmar-China pipeline, an official said.

The refinery is intended to construct at near Manntanpayarkan refinery in Mandalay region.

“Myanmar-China pipeline is owned by both (countries). We planned to get about 45,000 barrels of crude oil from the pipeline daily. We intended to construct the refinery at Simikone region at first but we need to force the residents to leave that region if we implemented the construction at that area. That’s why the construction site was happened to be near Manntanpayarkan refinery,” he said.

The purified petroleum achieved from that refinery will be used for the transportation sector since Myanmar petroleum market is usually used for transportation.

“There will be no state owned industry anymore. This refinery will not be invested by the government alone. We will invite joint venture with overseas or local companies,” he added.

China National Petroleum Corporation (CNPC)-South East Asia Pipeline Company Limited (SEAP) invests 50.9% of the pipe line project and the rest of the project is owned by the Ministry of Energy from Myanmar.

Although the project is said to be bilateral one, Myanmar will get only US$ six million per year for holding the pipeline and a dollar for running a barrel of petroleum, making 22 million dollars for 22 million of barrels of petroleum per year, Than Htay, the Minister of Energy said.

The pipeline ran along seven townships in Magway region and constructed under Ayeyarwaddy River.